EU Commission requests POLAND to correctly transpose Solvency II rules

Prudential rules for insurance companies:

The Commission has today sent a reasoned opinion to Poland for not having correctly transposed the Solvency II Directive. The Solvency II rules are crucial for the protection of insurance policyholders and the functioning of the Single Market for insurance products.

Incorrect transposition in one Member State can have can have an impact on the EU as a whole. The Single Market for insurance products requires that the supervisory authorities of Member States exchange information with each other and coordinate their decisions.

In particular, where national supervisory authorities decide – in the absence of a Commission equivalence decision – on the equivalence of third countries’ regimes for the supervision of insurance groups, the decisions by other Member States regarding the same third countries should not contradict each other.

However, the Commission is of the view that Poland has failed to ensure that the Polish supervisory authority’s decisions are consistent with other Member States’ authorities.

The Commission regrets that Poland has failed to fully transpose the Solvency II Directive and encourages it to do so urgently, bearing in mind the importance of these rules for the EU’s collective interest.

Without a satisfactory response within four months, the Commission may decide to refer the matter to the Court of Justice of the European Union.

Daniel Ferrie

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